Forecourt operators have been cautioned against taking advantage of the surging oil prices, with reports indicating that some have hiked pump prices by nearly 9p per liter in recent days.
As tensions in the Middle East escalate, motorists are witnessing a gradual increase in petrol and diesel prices. According to the RAC, the average price of petrol has gone up by almost 2.5p per liter, and diesel by over 3p, between last Saturday and this Wednesday. However, there are instances where prices at certain forecourts have surged even more.
Howard Cox, the founder of FairFuelUK, has highlighted concerns about “opportunistic profiteering,” noting that many forecourts are selling fuel at inflated prices despite purchasing stocks before wholesale price hikes. This behavior, he stated, indicates a prevalence of profiteering.
Daisy Cooper, the Lib Dem Treasury spokesperson, expressed worries about consumers bearing the brunt of escalating fuel costs, emphasizing the need for regulatory intervention to prevent fuel giants from exploiting families struggling with living expenses.
Gordon Balmer, the executive director of the Petrol Retailers Association, attributed the rise in pump prices to the increased wholesale costs of petrol and diesel due to the Middle East conflict. He emphasized that the economy could suffer from higher inflation and strained household budgets due to rising fuel prices.
With Brent crude surpassing $83 per barrel, concerns about energy bills escalating later in the year have emerged. Dan Coatsworth, head of markets at broker AJ Bell, highlighted the impact of rising oil prices on the global economy and investor uncertainty regarding a potential energy crisis.
The uncertainty surrounding the Middle East situation and its implications on oil supply continue to keep crude oil markets on edge, particularly concerning trade routes through the Strait of Hormuz.